3874 entries. Last updated May 21, 2013.

eCommerce Timeline

Theme

1960 – 1970

The First Commercial Online Service 1969

Compuserve was founded in Columbus, Ohio, as a way to generate income from Golden United Life Insurance mainframe computers during non-business hours.

Comcast became the first commercial online service in the United States.

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1970 – 1980

The Minitel 1978 – June 30, 2012

Rolled out experimentally in 1978 in Brittany, and throughout France in 1982 by PTT (Poste, Téléphone et Télécommunications), the Minitel was a Videotex online service accessible through telephone lines.  In 1991 PTT was divided into France Télécom and La Poste, with the Minitel operated by France Télécom. Users of the Minitel could make online purchases, make train reservations, check stock prices, search the telephone directory, have a mail box, and chat in a way similar to the Internet.

"Millions of terminals were lent for free to telephone subscribers, resulting in a high penetration rate among businesses and the public. In exchange for the terminal, the possessors of Minitel would not be given free 'white page' printed directories (alphabetical list of residents and firms), but only the yellow pages (classified commercial listings, with advertisements); the white pages were accessible for free on Minitel, and they could be searched by a reasonably intelligent search engine; much faster than flipping through a paper directory.

"France Télécom estimates that almost 9 million terminals—including web-enabled personal computers (Windows, Mac OS, and Linux)—had access to the network at the end of 1999, and that it was used by 25 million people (of a total population of 60 million). Developed by 10,000 companies, in 1996, almost 26,000 different services were available" (Wikipedia article in Minitel, accessed 07-11-2012).

Though usage was concentrated in France, the Minitel had a significant level of usage primarily in other European countries. The service was introduced in the United States very late, in 1993, by which time it faced serious competition from early Internet providers such as AOL, Prodigy, and CompuServe.  The Minitel service was finally shut down by France Télécom on June 30, 2012.

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1980 – 1990

The First Operational Online Antiquarian Bookselling Site 1988

Larry Costello founded Antiquarian Databases International (ADI).  A Bulletin Board System (BBS), ADI was the first operational online antiquarian bookselling site, and an extremely early venture in ecommerce, but it closed after only a few months.

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1990 – 2000

"Clearing the Way for Electronic Commerce" 1991

The National Science Foundation (NSF), Arlington, Virginia, lifted restrictions on the commercial use of the NSFNET Backbone Network, clearing the way for electronic commerce.

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The First Successful Online Bookseller Service 1993

Richard Weatherford established Interloc, "the first successful online bookseller service." Arguing that "our mission is to help booksellers find books for their own customers," Weatherford opened the database to booksellers only. In 1997 Interloc evolved into Alibris.

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Development of Neural Networks 1993

Psychologist, neuroscientist and cognitive scientist James A. Anderson of Brown University, Providence, RI, published "The BSB Model: A simple non-linear autoassociative network," M. Hassoun (Ed), Associative Neural Memories: Theory and Implementation (1993).  Anderson's neural networks were applied to models of human concept formation, decision making, speech perception, and models of vision.

Anderson, J. A., Spoehr, K. T. and Bennett, D.J.  "A study in numerical perversity: Teaching arithmetic to a neural network,"  D.S. Levine and M. Aparicio (Eds.) Neural Networks for Knowledge Representation and Inference, (1994).

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The First Commercial Website with the First Online Advertising May 1993

Tim O’Reilly, Sebastapol, California, launched the Global Network Navigator. This was the first web portal and the first true commercial website. According to a statement by Tim O'Reilly, it also contained the first online advertising. The Global Network Navigator was sold to America Online in 1995.

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Match.com 1994

Gary Kremen and Peng T. Ong started the online dating site Match.com.

"The initial business scope developed by this team included a possible subscription model, now common among personals services, and inclusion of diverse communities with high first trial and market leaders status, including women, technology professionals and the GLBT community. Fran Maier joined in late 1994 to lead the Match.com business unit where she significantly bolstered the strategy to make Match.com friendly and accessible to women (the men would then follow)" (Wikipedia article on Match.com).

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The First Marketing on the Internet Seminar Series 1994

Jim Sterne launched the first "Marketing on the Internet" seminar series. This eight-city tour was intended to promote the possibilities of using the Internet for advertising, marketing, sales, and customer service.

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Filed under: eCommerce

Yahoo! Founded April 1994 – January 18, 1995

Jerry Yang and David Filo, Electrical Engineering graduate students at Stanford,  changed the name of "Jerry's Guide to the World Wide Web" to "Yahoo!", for which the official expansion was "Yet Another Hierarchical Officious Oracle".

Filo and Yang selected the name because they liked the word's general definition, which comes from Gulliver's Travels by Jonathan Swift: "rude, unsophisticated, uncouth." Its URL was akebono.stanford.edu/yahoo. They created the Yahoo! domain on January 18, 1995.

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Commercial Spaming Starts with the "Green Card Spam" April 12, 1994

Commercial spamming started when a pair of immigation lawyers from Phoenix, Arizona, Laurence Canter and Martha Siegel, used bulk Usenet postings to advertise immigration law services. This was called the "Green Card spam", after the subject line of the postings: "Green Card Lottery-Final One?"

"Canter and Siegel sent their advertisement, with the subject 'Green Card Lottery - Final One?', to at least 5,500 Usenet discussion groups, a huge number at the time. Rather than cross-posting a single copy of the message to multiple groups, so a reader would only see it once (considered a common courtesy when posting the same message to more than one group), they posted it as separate postings in each newsgroup, so a reader would see it in each group they read. Their internet service provider, Internet Direct, received so many complaints that its mail servers crashed repeatedly for the next two days; it promptly terminated their service. Despite the ire directed at the two lawyers, they posted another advertisement to 1,000 newsgroups in June 1994. This time, Arnt Gulbrandsen put together the first software "cancelbot" to trawl Usenet and kill their messages within minutes. The couple claimed in a December 1994 interview to have gained 1,000 new clients and 'made $100,000 off an ad that cost them only pennies' " (Wikipedia article on Lawrence Cantor and Martha Siegel, accessed 03-17-2012).

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HTTP Cookies June 1994

Louis J. "Lou" Montulli II at Netscape Communications Corporation invented the HTTP cookie.

"Together with John Giannandrea, Montulli wrote the initial Netscape cookie specification the same year. Version 0.9beta of Mosaic Netscape, released on October 13, 1994, supported cookies. The first actual use of cookies (out of the labs) was made for checking whether visitors to the Netscape Web site had already visited the site. Montulli applied for a patent for the cookie technology in 1995, and US patent 5774670 was granted in 1998. Support for cookies was integrated in Internet Explorer in version 2, released in October 1995.

"The introduction of cookies was not widely known to the public, at the time. In particular, cookies were accepted by default, and users were not notified of the presence of cookies. Some people were aware of the existence of cookies as early as the first quarter of 1995, but the general public learned about them after the Financial Times published an article about them on February 12, 1996. In the same year, cookies received lot of media attention, especially because of potential privacy implications. Cookies were discussed in two U.S. Federal Trade Commission hearings in 1996 and 1997" (Wikipedia article on HTTP cookie, accessed 05-09-2009).

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The First Web Analytics Vendor June 1994

San Francisco entrepreneur Ariel Poler founded Internet Profiles Corporation ( I/PRO), the first commercial web analytics vendor, producer of the first log analyzer.

"The company emerged as the early market leader in the developing field of web usage measurement, partly because of its partnership with the venerable Neilsen Media Research . . . and Neilsen Media Services in . . . 1995." (Peters, Computerized Monitoring and Online Privacy [1999] 343).

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Filed under: eCommerce , Software

Amazon.com is Founded July 1994 – July 1995

In July 1994 Jeff Bezos of Seattle, Washington, incorporated Amazon.com. The company originally promoted itself as "Earth's biggest book store." 

Amazon.com was very nearly called "Cadabra," as in "abracadabra." Bezos rapidly re-conceptualized the name when his lawyer misheard the word as "cadaver." Bezos instead named the business after the river for two reasons: to suggest scale, as the earth's biggest book store, and because website listings were often alphabetical at that time.

In July 1995 Amazon sold its first bookDouglas Hofstadter's Fluid Concepts and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought.

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Probably the First For-Profit Social Networking Site 1995

Randy Conrads founded Classmates.com. This may be the first for-profit social networking website.

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The First Web Page Tagging System 1995

WebtraffIQ.com developed the first commercial web page tagging system.

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Free Online Classified Advertisements March 1995

Feeling isolated after having recently moved to the San Francisco Bay Area, and having observed people helping one another online at The Well and Usenet, Craig Naymark founded craigslist, as a bulletin board for social eventsIt evolved into a "central network of online communities, featuring free online classified advertisements – with jobs, internships, housing, personals, erotic services, for sale/barter/wanted, services, community, gigs, resume, and pets categories – and forums on various topics." Craigslist eventually made a profit by charging under-market fees for job ads in ten cities and for brokered apartment listings in New York City. By providing most classified advertising for free it undermined the traditional income stream of printed newspapers.

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The Beginning of the "Dot-Com Bubble" August 9, 1995

Netscape Communications, Mountain View, California, had a very successful IPO.

The stock, initially intended to be offered at $14 per share, was offered at double that for the IPO, and reached $75 on the first day of trading.

This was later considered the beginning of the "dot-com bubble."

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eBay is Founded September 3, 1995

French-born Iranian-American computer programmer Pierre M. Omidyar founded eBay in San Jose, California, as a sole proprietorship. Initially he conducted auctions under the name AuctionWeb, and advertised items for auction on USENET.

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Abebooks.com 1996

The used and antiquarian bookselling website Abebooks.com was launched in Victoria, BC, Canada.

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A Search Engine Initially Called "BackRub" January 1996

Larry Page and Sergey Brin, students of computer science at Stanford, began collaboration at on a search engine called BackRub, named for its unique ability to analyze the "back links" pointing to a given website.

"Larry, who had always enjoyed tinkering with machinery and had gained some notoriety for building a working printer out of Lego™, took on the task of creating a new kind of server environment that used low-end PCs instead of big expensive machines. Afflicted by the perennial shortage of cash common to graduate students everywhere, the pair took to haunting the department's loading docks in hopes of tracking down newly arrived computers that they could borrow for their network."

"Google founders Larry Page and Sergey Brin developed BackRub, the predecessor to the Google search engine, while working on an early library digitization project at Stanford that was funded in part by the National Science Foundation’s Digital Libraries Initiative. And PageRank, Google’s core search algorithm, which orders sites in search results based on the number of other sites that link to them, is simply a computer scientist’s version of citation analysis, long used to rate the influence of articles in scholarly print journals" Roush, "The Infinite Library Does Google's plan to digitize millions of print books spell the death of libraries; or their rebirth?" (Technology Review.com, May 2005, http://www.technologyreview.com/web/14408/, accessed 03-19-2009).

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First Recorded Use of the Term, Phishing January 2, 1996

The first recorded use of the term "phishing" (baits used to "catch financial information and passwords) occured on the "alt.online-service. America-online" Usenet newsgroup after AOL introduced measures to prevent using fake, algorithmically generated credit card numbers to open accounts. To obtain legitimate credit card information AOL crackers resorted to phishing.

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The First Web Analyzer with Drill-Down and Ad-Hoc Analysis 1997

Nettracker.com produced the first web log analyzer with "drill-down and ad-hoc analysis."

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The Cluetrain Manifesto 1998

In 1998 Rick Levine, Christopher Locke, Doc Searles and David Weinberger published the Cluetrain Manifesto containing 95 theses, presumably, and possibly grandiosely, in the tradition of Martin Luther.

The manifesto was first published online, followed in December 1999 by a printed book issued by Perseus Books in Cambridge, Massachusetts.

“A powerful global conversation has begun.” “Through the Internet, people are discovering and inventing new ways to share relevant knowledge with blinding speed. As a direct result, markets are getting smarter--and getting smarter faster than most companies.” “Markets are conversations.”

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Using Neural Networks for Word Sense Disambiguation 1998

Cognitive scientist / entrepreneur Jeffrey Stibel, physicist, psychologist, neural scientist James A. Anderson, and others from the Department of Cognitive and Linguistic Sciences at Brown University created a word sense disambiguator using George A. Miller's WordNet lexical database.

Stibel and others applied this technology in Simpli, "an early search engine that offered disambiguation to search terms. A user could enter in a search term that was ambiguous (e.g., Java) and the search engine would return a list of alternatives (coffee, programming language, island in the South Seas)."

"The technology was rooted in brain science and built by academics to model the way in which the mind stored and utilized language."

"Simpli was sold in 2000 to NetZero. Another company that leveraged the Simpli WordNet technology was purchased by Google and they continue to use the technology for search and advertising under the brand Google AdSense.

"In 2001, there was a buyout of the company and it was merged with another company called Search123. Most of the original members joined the new company. The company was later sold in 2004 to ValueClick, which continues to use the technology and search engine to this day" (Wikipedia article on Simpli, accessed 05-10-2009).

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Google is Founded September 7, 1998

Larry Page and Sergey Brin founded Google in Mountain View, California.

They described the technology in a paper entitled  "The Anatomy of a Large-Scale Hypertextual Web Search Engine", Computer Networks and ISDN Systems, 30, 107-117.

The first Google index included 26,000,000 web pages.

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MyFamily.com December 1998

The MyFamily.com website was launched in Provo, Utah, with additional free sites beginning in March, 1999. The site generated 1 million registered users within its first 140 days. The company raised more than $90 million in venture capital from investors, and changed its name on November 17, 1999 from Ancestry.com, Inc., to MyFamily.com, Inc. Its three Internet genealogy sites were then called Ancestry.com, MyFamily.com, and FamilyHistory.com.

Reference: http://www.paulallen.net/my-companies, accessed 12-18-2008.

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Domain Names are Property 1999

The U. S. Supreme Court ruled that Internet domain names are property.

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comScore is Founded August 1999

In August 1999 Magid M. Abraham and Gian M. Fulgoni founded comScore with the objective of creating the first service to measure trends in e-commerce.

"At the time, no market research company measured online buying behavior. The two leading online measurement companies, Media Metrix and Nielsen NetRatings, were focused solely on tracking Internet users’ site visitation behavior, providing their clients with basic metrics on the size and demographic characteristics of site audiences.

"The panels these two companies used numbered in the tens of thousands. This was far too small a sample size to accurately measure e-commerce since, on average, only 5 percent of a site’s visitors converted into buyers in any month. A panel of at least a million people would be needed. That was a daunting challenge because no research company had ever built a panel of 100,000 people, let alone a million. However, since their experience at IRI had shown that marketers spend four times as many research dollars measuring consumers’ buying behavior as they spend measuring media ratings, Magid and Gian were confident that an attractive market existed for online browsing and buying information. They decided to take on the challenge by raising and willingly investing tens of millions of dollars to discover ways in which to successfully recruit millions of opt-in panelists and develop the technology needed to capture, warehouse and analyze massive quantities of online data" (http://www.comscore.com/About_comScore/comScore_History, accessed 05-12-2009).

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Anticybersquatting Consumer Protection Act November 29, 1999

The Anticybersquatting Consumer Protection Act (also known as Truth in Domain Names Act), was enacted into U.S. law as is part of A bill to amend the provisions of title 17, United States Code, and the Communications Act of 1934, relating to copyright licensing and carriage of broadcast signals by satellite (S. 1948). The act mades people who registered domain names that are either trademarks or individual's names with the sole intent of selling the rights of the domain name to the trademark holder or individual for a profit liable to civil action.

"In order for a trademark owner to bring a claim under the ACPA, the owner must establish

  • the trademark owner’s mark is distinctive or famous;
  • the domain name owner acted in bad faith to profit from the mark; and
  • the domain name and the trademark are either identical or confusingly similar (or dilutive for famous trademarks)" 

(Wikipedia article on Anticybersquatting Consumer Protection Act, accessed 11-24-2008).


The Anticybersquatting Consumer Protection Act was enacted in part because the domain whitehouse.com went online in 1997 as an "adult entertainment" site, leading to this letter from a Whitehouse consel:

"The following is a December letter from a White House counsel to the operator of the "whitehouse.com" adult site regarding the use of the domain and the names and images of the White House, President Clinton, and Hillary Clinton on the site:

"The White House

"Washington

"December 8, 1997

 

"Mr. Dan Parisi

"Secaucus, New Jersey

"Dear Mr. Parisi:

"It will come as no surprise to you that the White House Counsel's Office is aware of your Internet Web site, "www.whitehouse.com," and that we object to your use of the names and images of the White House, the President, and the First Lady on that Web site to sell memberships in an adult video club. We also recognize that you undoubtedly will use this letter as an object of humor and as an invitation to advance the claim that you are merely exercising your rights under the First Amendment.

"We too believe in the First Amendment--and in humor, although we see nothing humorous in your use of the White House domain name to draw children and other unwitting Internet users to your Web site. However distasteful your business may be, we do not challenge your right to pursue it or to exercise your First Amendment rights, but we do challenge your right to use the White House, the President, and the First Lady as a marketing device. For adult internet users, that device is, at the least, part of a deceptive scheme. For younger Internet users, it has more disturbing consequences. As your own online disclaimer implicitly acknowledges, the foreseeable result of your use of the White House domain name is that children will access your Web site inadvertently. Your customers will understand that such a result is unconscionable, and so, we submit, should you.

Sincerely,

Charles F.C. Ruff

Counsel to the President" (http://news.cnet.com/2009-1023-207800.html, accessed 06-15-2009).

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2000 – 2005

Massive Denial-of-Service Attack 2000

A massive denial-of-service attack was launched against major websites, including Yahoo!, Amazon and ebay.

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The Journal of Interactive Advertising 2000

John D. Leckenby of The University of Texas at Austin and Hairong Li of Michigan State University founded the Journal of Interactive Advertising (JIAD).

The inaugural issue of the journal

"defined Interactive Advertising as the 'paid and unpaid presentation and promotion of products, services and ideas by an identified sponsor through mediated means involving mutual action between consumers and producers.' This is most commonly performed through the Internet as a medium" (Wikipedia article on Interactive advertising, accessed 04-22-2009).

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Climax of the Dot-Com Bubble March 10, 2000

The dot-com bubble, thought to have begun with the IPO of Netscape on August 9, 1995, reached its climax on March 10, 2000 with the NASDAQ peaking at 5132.52.

After this date the dot-com bubble began to burst.

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eBook Distributor is Acquired by Barnes & Noble June 5, 2000 – March 2009

Steven Pendergast, and Mindwise Media LLC owned by Scott Pendergast founded Fictionwise.com. Fictionwise.com became one of the largest distributors of ebooks in North America, and was acquired by Barnes & Noble in March 2009.

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Google Launches AdWords October 23, 2000

"Google Launches Self-Service Advertising Program

"Google's AdWords Program Offers Every Business a Fully Automated, Comprehensive and Quick Way to Start an Online Advertising Campaign /

"MOUNTAIN VIEW, Calif. - October 23, 2000 - Google Inc., developer of the award-winning Google search engine, today announced the immediate availability of AdWords(TM), a new program that enables any advertiser to purchase individualized and affordable keyword advertising that appears instantly on the google.com search results page. The AdWords program is an extension of Google's premium sponsorship program announced in August. The expanded service is available on Google's homepage or at the AdWords link at http://adwords.google.com, where users will find all the necessary design and reporting tools to get an online advertising campaign started" (http://www.google.com/press/pressrel/pressrelease39.html, accessed 06-09-2009).

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An Injunction Against Napter to Prevent Trading of Copyrighted Music March 5, 2001

The Ninth Circuit Court, San Francisco, issued an injunction ordering Napster to prevent the trading of copyrighted music on its network.

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iPod Launched October 23, 2001

Apple launched the iPod line of portable media players.

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Rhapsody is Launched December 2001

The online music store subscription service, Rhapsody, was launched in Seattle, Washington in December 2001.

"Downloaded files come with restrictions on their use, enforced by Helix, Rhapsody's version of digital rights management enforced on AAC+ or WMA files. The service also sells individual MP3s without digital rights management restrictions" (Wikipedia article on Rhapsody, accessed 03-18-2012).

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Apple Opens the iTunes Store April 28, 2003

Apple opened the software based, online iTunes Store.

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MySpace is Founded August 2003

In August 2003 Brad Greenspan and eUniverse founded MySpace in Santa Monica, California.

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Amazon Introduces "Search Inside" 120,000 Books October 23, 2003

On October 23, 2003 Amazon.com made it possible to “search inside” the full text of 120,000 books from more than 190 publishers.  This allowed Amazon users to search not only the full texts of individual titles but all 120,000 collectively. 

On October 23, 2003 joujrnalist Gary Wolf published an article about the cultural history of digital libraries, and more specifically Amazon's "Search Inside," in Wired magazine, entitled "The Great Library of Amazonia," from which I quote a portion:

"The more specific the search, the more rewarding the experience. For instance, I've recently become interested in Boss Tweed, New York's most famous pillager of public money. Manber types "Boss Tweed" into his search engine. Out pop a few books with Boss Tweed in the title. But the more intriguing results come from deep within books I never would have thought to check: A Confederacy of Dunces, by John Kennedy Toole; American Psycho, by Bret Easton Ellis; Forever: A Novel, by Pete Hamill. I immediately recognize the power of the archive to make connections hitherto unseen. As the number of searchable books increases, it will become possible to trace the appearance of people and events in published literature and to follow the most digressive pathways of our collective intellectual life.

"From the Hamill reference, I link to a page in the afterward on which he cites books that influenced his portrait of Tweed. There, on the screen, is the cream of the research performed by a great metropolitan writer and editor. Some of the books Hamill recommends are out of print, but all are available either new or used on Amazon.

"With persistence, serendipity and plenty of time in a library, I may have found these titles myself. The Amazon archive is dizzying not because it unearths books that would necessarily have languished in obscurity, but because it renders their contents instantly visible in response to a search. It allows quick query revisions, backtracking, and exploration. It provides a new form of map.

"Getting to this point represents a significant technological feat. Most of the material in the archive comes from scanned pages of actual books. This may be surprising, given that most books today are written on PCs, e-mailed to publishers, typeset on computers, and printed on digital presses. But many publishers still do not have push-button access to the digital files of the books they put out. Insofar as the files exist, they are often scattered around the desktops of editors, designers, and contract printers. For books more than a few years old, complete digital files may be lost. John Wiley & Sons contributed 5,000 titles to the Amazon project -- all of them in physical form.

"Fortunately, mass scanning has grown increasingly feasible, with the cost dropping to as low as $1 each. Amazon sent some of the books to scanning centers in low-wage countries like India and the Philippines; others were run in the United States using specialty machines to ensure accurate color and to handle oversize volumes. Some books can be chopped out of their bindings and fed into scanners, others have to be babied by a human, who turns pages one by one. Remarkably, Amazon was already doing so much data processing in its regular business that the huge task of reading the images of the books and converting them into a plain-text database was handled by idle computers at one of the company's backup centers."

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The First U.S. Standards for Sending Commercial E-Mail December 16, 2003

"The CAN-SPAM Act of 2003 (15 U.S.C. 7701, et seq., Public Law No. 108-187, was S.877 of the 108th United States Congress), signed into law by President George W. Bush established the United States' first national standards for the sending of commercial e-mail and requires the Federal Trade Commission (FTC) to enforce its provisions.

"The acronym CAN-SPAM derives from the bill's full name: Controlling the Assault of Non-Solicited Pornography And Marketing Act of 2003. This is also a play on the usual term for unsolicited email of this type, spam. The bill was sponsored in Congress by Senators Conrad Burns and Ron Wyden.

"The CAN-SPAM Act is commonly referred to as the "You-Can-Spam" Act because the bill explicitly legalizes most e-mail spam. In particular, it does not require e-mailers to get permission before they send marketing messages. It also prevents states from enacting stronger anti-spam protections, and prohibits individuals who receive spam from suing spammers. The Act has been largely unenforced, despite a letter to the FTC from Senator Burns, who noted that "Enforcement is key regarding the CAN-SPAM legislation." In 2004 less than 1% of spam complied with the CAN-SPAM Act of 2003.

"The law required the FTC to report back to Congress within 24 months of the effectiveness of the act.[4] No changes were recommended. It also requires the FTC to promulgate rules to shield consumers from unwanted mobile phone spam. On December 20, 2005 the FTC reported that the volume of spam has begun to level off, and due to enhanced anti-spam technologies, less was reaching consumer inboxes. A significant decrease in sexually-explicit e-mail was also reported.

"Later modifications changed the original CAN-SPAM Act of 2003 by (1) Adding a definition of the term "person"; (2) Modifying the term "sender"; (3) Clarifying that a sender may comply with the act by including a post office box or private mailbox and (4) Clarifying that to submit a valid opt-out request, a recipient cannot be required to pay a fee, provide information other than his or her email address and opt-out preferences, or take any other steps other than sending a reply email message or visiting a single page on an Internet website" (Wikipedia article on CAN-SPAM Act of 2003, accessed 01-19-2010).

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Facebook February 4, 2004

While a student at Harvard Mark Zuckerberg founded Thefacebook.com.

The name of the site was later simplified to Facebook. Membership was initially limited to Harvard students. but then expanded to other colleges in the Ivy League. Facebook expanded further to include any university student, then high school students, and, finally, to anyone aged 13 and over. 

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BitTorrent is Commercialized September 22, 2004

Programmer Bram Cohen, author of the peer-to-peer (P2P) BitTorrent protocol, and entrepreneur Ashwin Navin founded BitTorrent, Inc. in San Francisco.

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"The Long Tail" October 2004

Chris Anderson published "The Long Tail" in Wired magazine.

In this article he described "the niche strategy of businesses, such as Amazon.com or Netflix, that sell a large number of unique items, each in relatively small quantities. Anderson elaborated the Long Tail concept in his book The Long Tail: Why the Future of Business Is Selling Less of More.

"A frequency distribution with a long tail — the concept at the root of Anderson's coinage — has been studied by statisticians since at least 1946. The distribution and inventory costs of these businesses allow them to realize significant profit out of selling small volumes of hard-to-find items to many customers, instead of only selling large volumes of a reduced number of popular items. The group that purchases a large number of "non-hit" items is the demographic called the Long Tail.

"Given a large enough availability of choice, a large population of customers, and negligible stocking and distribution costs, the selection and buying pattern of the population results in a power law distribution curve, or Pareto distribution. This suggests that a market with a high freedom of choice will create a certain degree of inequality by favoring the upper 20% of the items ("hits" or "head") against the other 80% ("non-hits" or "long tail"). This is known as the Pareto principle or 80–20 rule.

"The Long Tail concept has found a broad ground for application, research and experimentation. It is a common term in online business and the mass media, but also of importance in micro-finance (Grameen Bank, for example), user-driven innovation (Eric von Hippel), social network mechanisms (e.g., crowdsourcing, crowdcasting, Peer-to-peer), economic models, and marketing (viral marketing)" (Wikipedia article on The Long Tail, accessed 04-19-2009).

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2005 – 2010

Kosmix.com 2005

"With the vision of connecting people to information that makes a difference in their lives," Venky Harinarayan and Anand Rajaraman founded Kosmix.com in Mountain View, California.

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The Million Dollar Homepage August 25, 2005 – January 11, 2006

Alex Tew, a student from Wiltshire, England, launched The Million Dollar Homepage to pay for his university education.

"The home page consists of a million pixels arranged in a 1000 × 1000 pixel grid; the image-based links on it were sold for $1 per pixel in 10 × 10 blocks. The purchasers of these pixel blocks provided tiny images to be displayed on them, a Uniform Resource Locator (URL) to which the images were linked, and a slogan to be displayed when hovering a cursor over the link. The aim of the site was to sell all of the pixels in the image, thus generating a million dollars of income for the creator. The Wall Street Journal has commented that the site inspired other websites that sell pixels.

"Launched on 26 August 2005, the website became an Internet phenomenon. The Alexa ranking of web traffic peaked at around 127; as of 18 February 2009 (2009 -02-18)[update], it is 42,735. On 1 January 2006, the final 1,000 pixels were put up for auction on eBay. The auction closed on 11 January with a winning bid of $38,100 that brought the final tally to $1,037,100 in gross income" (Wikipedia article on The Million Dollar Homepage, accessed 05-08-2009).

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The Amazon Mechanical Turk November 2, 2005

Alluding to Wolfgang von Kempelen's eighteenth-century automaton, The Turk, which purported to automate chessplaying when this was impossible, Amazon.com launched the Amazon Mechanical Turk:

"a crowdsourcing marketplace that enables computer programs to co-ordinate the use of human intelligence to perform tasks which computers are unable to do."

This was  the first business application using Collaborative Human Interpreter, a programming language "designed for collecting and making use of human intelligence in a computer program. One typical usage is implementing impossible-to-automate functions."

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The Growing Field of Internet Marketing 2006

PricewaterhouseCoopers reported that US$16.9 billion was spent on Internet marketing in the U.S. during 2006. (PricewaterhouseCoopers website, accessed 05-10-2009).

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The Highest Price Paid for a Domain Name January 16, 2006

Having initially registered the domain name for free, after which he temporarily lost it to a con man, Gary Kremen won a lawsuit and sold Sex.com for Boston-based Escom LLC $14,000,000 or  "$15 million in cash and stock." This was the highest price obtained for a domain name at the time. Maybe ever?

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File-Sharing Exceeds Sales of Digital Music Downloads January 22, 2006

In 2006 free file-sharing of digital music on the web exceeded the sale of digital music downloads by many fold:

"Total music sales - including online - are off some 20 percent from five years ago. Songs traded freely over unlicensed Internet sites swamp the number of legal sales by thousands to one."

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College-Level Lectures Via Podcasts January 28, 2006

Apple launched iTunes U, a service that offered college-level lectures via podcasts.

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Zillow.com February 8, 2006

Rich Barton and Lloyd Frink, former Microsoft executives and founders of Expedia launched the online real estate service company, Zillow.com in Seattle, Washington.

"Zillow allows users to see the value of millions of homes across the United States, not just those up for sale. In addition to giving value estimates of homes, it offers several unique features including value changes of each home in a given time frame (such as 1, 5, or 10 years), aerial views of homes, and prices of homes in the area. Where it can access appropriate data, it also provides basic information on a given home, such as square footage and the number of bedrooms and bathrooms. Users can also get current estimates of homes if there was a significant change made, such as a recently remodeled kitchen. Zillow provides an application programming interface (API) and developer support network.

"As a part of its API, Zillow assigns a numerical integer to each of the 70 million homes in its database, which is plainly visible as CGI parameters to the URLs to individual entries on its website. The identifier is not obfuscated and is assigned in sequence for each house or condo on the side of a street. Zillow reports on individual units, such as providing street address, latitude and longitude. When integrated with the features of a typical online reverse telephone directory and wiki-mapping services such as WikiMapia, it allows for nationwide "seating assignments" of U.S. neighborhoods for each house that has a listed phone number with a real human name" (Wikipedia article on Zillow.com.)

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Over One Billion iTunes Downloads February 22, 2006

Apple iTunes Store surpassed one billion iTunes downloads.

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The Biggest Music Retailer in the World: Apple's iTune Store April 23, 2006

Apple's iTunes Store was acknowledged as the biggest music retailer in the world, able to dictate its 99 cent per track retail price to music wholesalers.

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100,000,000 Users Within Three Years August 9, 2006

In 2006 MySpace, founded in August 2003, had 100,000,000 users.

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Will it Blend? October 2006

Tom Dickson, the founder of Blendtec, a blender manufacturer in Orem, Utah, began the Will it Blend? viral marketing campaign on the Internet.

Between downloads on YouTube and on the Will it Blend? website, the advertising program, featuring blending of many absurd items such as blending an iPhone, many of which are listed and linked-to in the Wikipedia article on Will it Blend?, became one of the most successful Internet marketing campaigns, surpassing 100,000,000 hits by May 2009.

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Google's AdWords to Place Ads in Print Newspapers November 6, 2006

Google and various print newspapers, including The New York Times, announced that they would test a modified version of Google's AdWords program to place advertisements in print newspapers.

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Google Buys YouTube November 6, 2006

Google completed the purchase of YouTube for $1.65 billion in Google stock.

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Newspaper Advertising in Partnership with Yahoo November 20, 2006

"A consortium of seven newspaper chains representing 176 daily papers across the country is announcing a broad partnership with Yahoo to share content, advertising and technology . . . . In the first phase of the deal, the newspaper companies will begin posting their employment classified ads on Yahoo’s classified jobs site, HotJobs, and start using HotJobs technology to run their own online career ads.

"But the long-term goal of the alliance with Yahoo, according to one senior executive at a participating newspaper company, is to be able to have the content of these newspapers tagged and optimized for searching and indexing by Yahoo."

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Gaining 100,000,000 New Accounts in One Year September 7, 2007

In September 2007 MySpace had over 200,000,000 accounts. Within approximately one year it gained 100,000,000 new accounts.

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21 Billion $ in Revenue from Google AdWords 2008

The revenue from AdWords, Google's flagship advertising product, was  $21,795,550,000 in 2008.

"AdWords offers pay-per-click (PPC) advertising, and site-targeted advertising for both text and banner ads. The AdWords program includes local, national, and international distribution. Google's text advertisements are short, consisting of one title line and two content text lines. Image ads can be one of several different Interactive Advertising Bureau (IAB) standard sizes" (Wikipedia article on AdWords, accessed 06-09-2009).

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About 200 Million People in the U.S. Have Broadband Connections May 2008

By 2008 broadband technologies had spread to more than 90% of all residential Internet connections in the United States.

"When one considers a Nielsen’s study conducted in June 2008, which estimated the number of U.S. Internet users as 220,141,969, one can calculate that there are presently about 199 million people in the United States utilizing broadband technologies to surf the Web" (Wikipedia article on Internet marketing, accessed 05-10-2009).

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Five Billion Songs June 2008

By June 2008 Apple's iTunes Store had reportedly sold five billion songs.

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The iTunes App Store Opens July 10, 2008

Apple opened its online iTunes App Store. At launch it contained 522 Apps for the iPhone, including 135 free programs.

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The Leading Classified Advertising Service September 2008

Craigslist, the leading classified advertising service, provided free local classifieds and forums for more than 550 cities in over 50 countries, generating more than 12 billion page views per month, used by more than 50 million people each month. Craigslist users self-published more than 30 million new classified ads each month and more than 2 million new job listings each month. Each month craigslist also posted more than 100 million user postings in more than 100 topical forms. All of this it did with only 25 employees.

Because craigslist did not charge for classified advertising it replaced a large portion of the classified advertising that historically was placed in print newspapers. By doing so it substantially reduced the significant revenue that print newspapers historically generated from classified advertising. This contributed to an overall reduction of profits for many print newspapers. Similarly, craigslist's policy of charging below-market rates for job listings impacted that traditional source of newspaper revenue, and impacted profits at physical employment agencies, and the more expensive online employment agencies.

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More than 200,000,000 Apps Downloaded October 21, 2008

Apple's iTunes App Store reported on October 21, 2008  that it had sold 200,000,000 million downloads sinces its opening on July 10, 2008. By this time the store iTunes App Store had 5500 Apps available for purchase.

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Downloads Trump CDs November 25, 2008

Atlantic Records, a unit of Warner Music Group, New York, reported that more than half its revenue came from downloads and ringtones sold over the Internet, rather than CDs. This was the first major record label to record this change.

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Apple Eliminates Anticopying Restrictions from iTunes January 6, 2009

Having sold over a billion songs through the iTunes store in 2008, Apple announced that it reached agreements with record companies to remove anticopying restrictions on all tunes in the iTunes store. It also allowed record companies to set a range of prices for the songs.

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Kickstarter.com is Launched April 28, 2009

On April 28, 2009 Perry Chen, Yancey Strickler, and Charles Adler launched Kickstarter.com, originally under the url of KickStartr.com. The company was based in New York City.

"One of a number of fundraising platforms dubbed 'crowd funding,' Kickstarter facilitates gathering monetary resources from the general public, a model which circumvents many traditional avenues of investment. Project creators choose a deadline and a goal minimum of funds to raise. If the chosen goal is not gathered by the deadline, no funds are collected (this is known as a provision point mechanism). Money pledged by donors is collected using Amazon Payments. The platform is open to backers from anywhere in the world and to creators from the US or the UK.

"Kickstarter takes 5% of the funds raised. Amazon charges an additional 3–5%. Unlike many forums for fundraising or investment, Kickstarter claims no ownership over the projects and the work they produce. However, projects launched on the site are permanently archived and accessible to the public. After funding is completed, projects and uploaded media cannot be edited or removed from the site" (Wikipedia article on Kickstarter, accessed 02-21-2013).

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Larger Version of the Amazon Kindle Introduced May 6, 2009

Jeff Bezos of Amazon.com unveiled a larger version of the Amazon Kindle called the Kindle DX (for Deluxe). The larger model had a 

"9.7-inch display with auto-rotation, high-speed wireless access to 275,000 books, 3.3 gigabytes of storage, or room for up to 3,500 books. Native support for PDF documents, with no panning, zooming or scrolling necessary" (http://bits.blogs.nytimes.com/2009/05/06/live-blogging-the-kindle-fest/).

The initial list price of the DX was $489, or $130 more than the previous model, the Kindle 2. The DX was available for sale in the summer of 2009.

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Changing the Advertising Model for General News Reporting May 21, 2009

In an interview in the Financial Times, Google CEO Eric Schmidt

"reveals that Google seriously considered either buying a newspaper as a for-profit enterprise or hiring a pack of smart lawyers to reconfigure the paper as a nonprofit venture. He doesn't name which paper, of course, but the Financial Times reporters pointedly remind their readers that the hedge fund Harbinger Capital Partners offered Google its twenty percent stake in the New York Times. Ultimately, however, the company decided that going so far as owning an outlet that actually produced copy, rather than simply aggregating and organizing it, would be 'crossing the line' between a content company and a technology company. Wall Street Journal writer Jessica Vascellaro argues that this position is growing increasingly flimsy. After all, she writes, both YouTube and Google's Book Search project are awfully close to resembling content production.

"The real reason may be twofold. First, as Schmidt readily concedes, the targeted papers are either far too expensive or burdened with too much debt and liabilities. Second, the advertising model for general news reporting is obsolete, and Google's execs have decided instead to work with papers such as the Washington Post . . .to come up with a new model that can subsidize serious general news gathering. The days when general display ads would float on the page, contextually disconnected from the substance of the stories, are over. But who wants their ads tied to stories of Gitmo torture? Unless the business model radically changes, there will be no revenue stream that props up the most serious and important news stories.

"So what does Schmidt have in mind for the Washington Post? 'It seems to me that the newspaper that I read online should remember what I read. It should allow me to go deeper into the stories. It's that kind of a discussion that we're having.' In other words, the paper will store and archive a catalogue of the stories you read, steer more stories along those lines to your eyeballs, and keep you coming back for more by knowing what you're most interested in. Google already remembers what you search for, in order to more accurately match ads to your search screen. Now, it seems, Schmidt would like to apply this technique to news gathering" (http://www.thebigmoney.com/blogs/feeling-lucky/2009/05/21/google-almost-bought-paper, accessed 05-22-2009)

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Size of the Online Book Market in the U.S. June 1, 2009

"Around 14.9 million U.S. households regularly buy books online. Among that group, 48 percent earn more than $70,000 a year and spend $28 a month on books, half of them online" (http://news.cnet.com/8301-1023_3-10253199-93.html, accessed 06-01-2009)

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"Revenue at Craigslist is Said to Top $100,000,000" June 9, 2009

"SAN FRANCISCO — As the newspaper industry and its classified advertising business wither, one company appears to be doing extraordinarily well: Craigslist.

"The Internet classified ads company, which promotes its “relatively noncommercial nature” and “service mission” on its site, is projected to bring in more than $100 million in revenue this year, according to a new study from Classified Intelligence Report, a publication of AIM Group, a media and Web consultant firm in Orlando, Fla.

"That is a 23 percent jump over the revenue the firm estimated for 2008 and a huge increase since 2004, when the site was projected to bring in just $9 million. 'This is a down-market for just about everyone else but Craigslist,' said Jim Townsend, editorial director of AIM Group. The firm counted the number of paid ads on the site for a month and extrapolated an annual figure. It said its projections were conservative.

"By contrast, classified advertising in newspapers in the United States declined by 29 percent last year, its worst drop in history, according to the Newspaper Association of America" (http://www.nytimes.com/2009/06/10/technology/internet/10craig.html?hpw, accessed 06-10-2009).

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Bing Will Power Yahoo! Search July 29, 2009

Microsoft and Yahoo! announced a 10-year deal in which the Yahoo! search engine, then second-largest in terms of query volume, would be replaced by Bing. Yahoo! would get to keep 88% of the revenue from all search ad sales on its site for the first five years of the deal, and have the right to sell advertisements on some Microsoft sites. Yahoo! Search would still maintain its own user interface, but would eventually feature "Powered by Bing" branding.

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MySpace Acquires iLike August 19, 2009

MySpace, a division of Fox Interactive Media, announced that it would acquire the "social music discovery service" iLike.

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The Largest Study of Global Internet Traffic Since the Beginning of the Commercial Internet October 19, 2009

Arbor Networks, Chelmsford, Massachusetts, the University of Michigan, and Merit Network presented the findings of the Internet Observatory Report at the North American Network Operators Group NANOG47 in Dearborn, Michigan:

"• The report is believed to be the largest study of global Internet traffic since the start of the commercial Internet in the mid-1990s. The report offers analysis of two years worth of detailed traffic statistics from 110 large and geographically diverse cable operators, international transit backbones, regional networks and content providers.

"• At its peak, the study monitored more than 12 terabits-per-second and a total of more than 256 exabytes of Internet traffic over the two-year life of the study.

"• The Internet Observatory Report includes a discussion around significant changes in Internet topology and commercial inter-relationships between providers; analysis of changes in Internet protocols and applications; and a concluding analysis of Internet growth trends and predictions of future trends.

Key Findings:

"• Evolution of the Internet Core: Over the last five years, Internet traffic has migrated away from the traditional Internet core of 10 to 12 Tier-1 international transit providers. Today, the majority of Internet traffic by volume flows directly between large content providers, datacenter / CDNs and consumer networks. Consequently, most Tier-1 networks have evolved their business models away from IP wholesale transit to focus on broader cloud / enterprise services, content hosting and VPNs.

"• Rise of the ‘Hyper Giants’: Five years ago, Internet traffic was proportionally distributed across tens of thousands of enterprise managed web sites and servers around the world. Today, most content has increasingly migrated to a small number of very large hosting, cloud and content providers. Out of the 40,000 routed end sites in the Internet, 30 large companies – “hyper giants” like Limelight, Facebook, Google, Microsoft and YouTube – now generate and consume a disproportionate 30% of all Internet traffic.

"• Applications Migrate to the Web: Historically, Internet applications communicated across a panoply of application specific protocols and communication stacks. Today, the majority of Internet application traffic has migrated to an increasingly small number of web and video protocols, including video over web and Adobe Flash. Other mechanisms for video and application distribution like P2P (peer-to-peer) have declined dramatically in the last two years.

"• A New Internet Ecosystem: Over the last five years, macroeconomic forces have radically transformed the global Internet commercial ecosystem. Economic changes, including the collapse of wholesale IP transit and the dramatic growth in advertisement-supported service, reversed decade-old business dynamics between transit providers, consumer networks and content providers. A wave of innovation is ongoing, with service providers now offering everything from triple play services to managed security services, VPNs and increasingly, CDNs. This change in the Internet business ecosystem has significant ongoing implications for backbone engineering, design of Internet scale applications and research."

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Google Represents 6% of All Internet Traffic October 19, 2009

According to Arbor Networks' 2009 Atlas Observatory Report Google accounted for 6 percent of all Internet traffic of every type. 

"And how many would have heard of a company called Carpathia Hosting? Its MegaUpload, MeaErotik, MegaClick and MegaVideo services have turned it into a company that now accounts for 1 percent of all Internet traffic, says Arbor, and this will doubtless grow. The important takeaway is that few of these companies had even been heard of two years ago, and very few of them are big telcos. To put all this into perspective, in 2007 Arbor found that the overwhelming majority of Internet traffic was accounted for by 30,000 entities, with fifty percent of traffic accounted for by around 10,000 companies.

"Only two years later that same fifty percent now runs through only 150 top 'content delivery networks' (CDNs), an astonishing consolidation made more remarkable by the fact that Internet traffic has grown significantly during that time.

" 'Up to 2007, The Internet meant connecting to lots of servers and data centres around the world,' notes Arbor's chief scientist, Craig Labovitz. Now there are barely 100 companies that matter. Traffic patterns tend to be hidden, mainly because the companies losing out - the traditional telcos and ISPs - don't exactly have an interest in advertising their waning status. The reason for their decline in importance is that Internet traffic is being driven by huge providers with access to content such as video.

" 'For 150 years, they [BT and other telcos] have had the same business model. Now everyone is trying to get away from being a dumb pipe.' Arbor's Atlas Internet Observatory report crunched traffic from 100 of the Internet's largest entities, accounting for 12 Terabytes of peak throughput, equivalent to about a quarter of the Internet's total at any one moment, said Labovitz.The importance of this is not simply that a small number of companies will account for a lot of traffic, but that these companies are increasingly what the Internet actually is. The Internet up to around 2007 was dominated by a hierarchy of companies, co-operating with one another to allow traffic to be passed from one to the other, regardless of size. The new Internet superpowers, in stark contrast, bypass a lot of this and use direct connections from one to the other. If a company is not part of this new core, it could find itself increasingly passed to the 'long tail', a polite way of saying they will be shoved to the fringe.  

"Video, including video that runs over web/http, now accounts for an estimated 10 percent of all Internet traffic, and is one reason all these direct connections between large data centres are now necessary. IPv6 traffic remains tiny at only 0.03 percent of traffic, but is showing sudden and possibly rapid growth in recent months thanks to deployments by named hosters.  

"Interestingly, P2P is in rapid decline, falling from around 3 percent of all traffic in 2007 to only half a percent now. Again, downloaders appear to prefer direct connectivity for downloads, mostly through port 80 and the web" (http://www.thestandard.com/news/2009/10/14/internet-now-dominated-traffic-superpowers)

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2010 – 2011

3 Billion iPhone and iPod Apps Were Downloaded in less than 18 Months January 5, 2010

On January 5, 2010 Apple announced that more than three billion apps were downloaded from its App Store by iPhone and iPod touch users worldwide.  

" 'Three billion applications downloaded in less than 18 months—this is like nothing we’ve ever seen before,' said Steve Jobs, Apple’s CEO. 'The revolutionary App Store offers iPhone and iPod touch users an experience unlike anything else available on other mobile devices, and we see no signs of the competition catching up anytime soon ' " (http://www.apple.com/pr/library/2010/01/05appstore.html, accessed 01-05-2010).

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After the Earthquake in Haiti, Donating by SMS Text January 13, 2010

After the disastrous earthquake in Haiti you could send aid money by text message on your cell phone, and $10 was put on your cell phone bill. In the case of the Red Cross you could "send a $10 Donation by Texting ‘Haiti’ to 90999", or you could donate by phone or by credit card on the Red Cross website, or through social networking sites.

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The First Superman Comic Book sells for $1,000,000. February 22, 2010

The web auction site ComicConnect.com in New York sold the first edition of the first Superman comic book, Action Comics #1, for $1,000,000.

"ComicConnect.com, one of the industry’s leading online auction/consignment sites, just sold an extremely rare, top-condition copy of the world’s most coveted comic book for exactly $1,000,000. That figure is more than three times higher than the prior record-holder, also set by ComicConnect.com.

"That comic book, of course, is Action Comics #1, which marked the debut of Superman in 1938 and promptly changed the course of pop culture forever.

" 'This particular copy has been in a private collection for more than 15 years, and it’s likely to disappear again once it’s been turned over to its new owner. However, ComicConnect.com will allow the media to view it briefly in its New York City showroom (873 Broadway, Suite 201, 212-895-3999). The showroom is also home to ComicConnect.com’s affiliate, Metropolis Collectibles (metropoliscomics.com), the largest vintage comic book dealer in the world.

" 'It’s the Holy Grail of comic books,' says founder Stephen Fishler, one of the leading experts on collectible comics.

“ 'Before Action Comics #1, there was no such thing as a superhero or a man who could fly,' notes Fishler, who created the 10-point grading scale which today is used universally to evaluate the condition of comic books.

“ 'It’s the single most important event in comic book history,' adds ComicConnect.com co-owner and COO, Vincent Zurzolo.

"Only about 100 copies Action Comics #1 remain in existence, and of those 100, only two have received a grading of 8.0 (Very Fine) or higher. This particular book is one of them, making it among the rarest of the rare.

"Up until now, the record-holder was another Action Comics #1, this one with a grading of 6.0. It sold on ComicConnect.com for $317,200 in 2009.

"According to the Overstreet Price Guide to Comic Books—the industry bible—Action Comics #1 is indisputably the highest-valued comic book of all time. In second place is Detective Comics #27, which marked the first appearance of Batman in 1939. An Action Comics #1 graded 8.0 or higher is priced about 25% higher than a comparable Detective Comics #27" (http://www.comicconnect.com/, accessed 02-25-2010).

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For the First Time E-books Outsell Digital Books on Amazon.com July 19, 2010

During the months of April, May, and June 2010 sales of ebooks (e-books) exceeded sales of hardcover physical books at Amazon.com. "In that time Amazon said, it sold 143 Kindle books for every 100 hardcover books, including hardcovers for which there is no Kindle edition."

The New York Times online, which reported this information, did not compare Amazon's sales of e-books versus their sales of paperback books during the same period, but indicated that  "paperback sales are thought to still outnumber e-books."

"Book lovers mourning the demise of hardcover books with their heft and their musty smell need a reality check, said Mike Shatzkin, founder and chief executive of the Idea Logical Company, which advises book publishers on digital change. 'This was a day that was going to come, a day that had to come,' he said. He predicts that within a decade, fewer than 25 percent of all books sold will be print versions.  

"Still, the hardcover book is far from extinct. Industrywide sales are up 22 percent this year, according to the American Publishers Association."

The shift at Amazon is "astonishing when you consider that we’ve been selling hardcover books for 15 years, and Kindle books for 33 months," Amazon's chief executive, Jeffrey P. Bezos, said in a news release, published in Amazon.com's Media Room.

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Instagram is Founded October 2010 – December 17, 2012

In October 2010 Kevin Systrom and Cheyenne Foster launched Instagram, an online photo-sharing and social networking service that enabled users to take a picture, apply a digital filter to it, and share on a variety of networking services, including its own. Instagram was purchased in April 2012 by Facebook for approximately $1 billion in cash and stock.  After regulatory approval the deal closed in September 2012 by which time Instagram had over 100 million users. 

"On December 17, 2012, Instagram updated its Terms of Service to allow Instagram the right to sell users' photos to third parties without notification or compensation after January 16, 2013. The criticism from privacy advocates, consumers and even National Geographic which suspended its Instagram account, prompted Instagram to issue a statement retracting the controversial terms. Instagram is currently working on developing new language to replace the disputed terms of use" (Wikipedia article on Instagram, accessed 12-22-2012).

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The Website of MasterCard is Hacked by Wikileaks Supporters December 8, 2010

"The website of MasterCard has been hacked and partially paralysed in apparent revenge for the international credit card's decision to cease taking donations to WikiLeaks. A group of online activists calling themselves Anonymous appear to have orchestrated a DDOS ('distributed denial of service') attack on the site, bringing its service at www.mastercard.com to a halt for many users. " 'Operation: Payback' is the latest salvo in the increasingly febrile technological war over WikiLeaks. MasterCard announced on Monday that it would no longer process donations to the whistleblowing site, claiming it was engaged in illegal activity.  

"The group, which has been linked to the influential internet messageboard 4Chan, has been targeting commercial sites which have cut their ties with WikiLeaks. The Swiss bank PostFinance has already been targeted by Anonymous after it froze payments to WikiLeaks, and the group has vowed to target Paypal, which has also ceased processing payments to the site. Other possible targets are EveryDNS.net, which suspended dealings on 3 December, Amazon, which removed WikiLeaks content from its EC2 cloud on 1 December, and Visa, which suspended its own dealings yesterday.  

"The action was confirmed on Twitter at 9.39am by user @Anon_Operation, who later tweeted: 'WE ARE GLAD TO TELL YOU THAT http://www.mastercard.com/ is DOWN AND IT'S CONFIRMED! #ddos #wikileaks Operation:Payback(is a bitch!) #PAYBACK'

"No one from MasterCard could be reached for immediate comment, but a spokesman, Chris Monteiro, has said the site suspended dealings with WikiLeaks because 'MasterCard rules prohibit customers from directly or indirectly engaging in or facilitating any action that is illegal'.  

"DDOS attacks, which often involve flooding the target with requests so that it cannot cope with legitimate communication, are illegal" (http://www.guardian.co.uk/media/2010/dec/08/mastercard-hackers-wikileaks-revenge, accessed 12-08-2010).

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2011 – 2013

Borders Files Chapter 11 Bankruptcy February 16, 2011

Borders, the second largest brick and mortar bookstore chain in the United States, headquartered in Ann Arbor, Michigan, filed chapter 11 bankruptcy.

On February 12, 2011 Borders' stock closed at 25 cents, reflecting a bet that the chain could be liquidated. The company was unable to compete adequately against Internet booksellers, led by Amazon.com, or against the leading brick and mortar chain, Barnes and Noble.

"Borders, whose second largest shareholder William Ackman has said it was his worst investment ever, had been preserving its cash by delaying payments to suppliers, such as publishers and landlords.

"Sales at Borders declined by double-digit percentage rates in 2008, 2009 and in each quarter in 2010 it has reported. "Borders, which has 6,100 full time staff, operates 508 namesake superstores as well as a chain of smaller Waldenbooks stores.

"The company said it would close about 30 percent of its stores in the next several weeks and plans to continue to pay its employees.

"Borders' largest unsecured creditors include major publishers that provide the books it sells. Borders owes Pearson PLC's Penguin $41.2 million, Hachette Book Group USA $36.9 million, and CBS's Simon & Schuster $33.8 million, according to court documents.

"The case is In re: Borders Group Inc, U.S. Bankruptcy Court, Southern District of New York, No: 11-10614" (http://www.huffingtonpost.com/2011/02/16/borders-files-for-bankruptcy_n_823889.html?utm_source=DailyBrief&utm_campaign=021611&utm_medium=email&utm_content=NewsEntry&utm_term=Daily+Brief

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In its First Year Apple's iBookstore Sold 100,000,000 Books March 2, 2011

In March 2010 Steve Jobs announced that 100 million ibooks (ebooks) were downloaded since the company introduced its iBookstore in one year earlier.

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Walmart Buys Kosmix.com, Forming @WalmartLabs April 18, 2011

Wal-Mart, the world’s largest retailer, agreed to buy Kosmix.com, a social media start-up focused on ecommerce, creating @WalmartLabs.

"Eric Schmidt famously observed that every two days now, we create as much data as we did from the dawn of civilization until 2003. A lot of the new data is not locked away in enterprise databases, but is freely available to the world in the form of social media: status updates, tweets, blogs, and videos.

"At Kosmix, we’ve been building a platform, called the Social Genome, to organize this data deluge by adding a layer of semantic understanding. Conversations in social media revolve around 'social elements' such as people, places, topics, products, and events. For example, when I tweet 'Loved Angelina Jolie in Salt,' the tweet connects me (a user) to Angelia Jolie (an actress) and SALT (a movie). By analyzing the huge volume of data produced every day on social media, the Social Genome builds rich profiles of users, topics, products, places, and events. The Social Genome platform powers the sites Kosmix operates today: TweetBeat, a real-time social media filter for live events; Kosmix.com, a site to discover content by topic; and RightHealth, one of the top three health and medical information sites by global reach. In March, these properties together served over 17.5 million unique visitors worldwide, who spent over 5.5 billion seconds on our services.

"Quite a few of us at Kosmix have backgrounds in ecommerce, having worked at companies such as Amazon.com and eBay. As we worked on the Social Genome platform, it became apparent to us that this platform could transform ecommerce by providing an unprecedented level of understanding about customers and products, going well beyond purchase data. The Social Genome enables us to take search, personalization and recommendations to the next level.

"That’s why we were so excited when Walmart invited us to share with them our vision for the future of retailing. Walmart is the world’s largest retailer, with 10.5 billion customer visits every year to their stores and 1.5 billion online – 1 in 10 customers around the world shop Walmart online, and that proportion is growing. More and more visitors to the retail stores are armed with powerful mobile phones, which they use both to discover products and to connect with their friends and with the world. It was very soon apparent that the Walmart leadership shared our vision and our enthusiasm. And so @WalmartLabs was born. . . .

"We are at an inflection point in the development of ecommerce. The first generation of ecommerce was about bringing the store to the web. The next generation will be about building integrated experiences that leverage the store, the web, and mobile, with social identity being the glue that binds the experience. Walmart’s enormous global reach and incredible scale of operations -- from the United States and Europe to growing markets like China and India -- is unprecedented. @WalmartLabs, which combines Walmart’s scale with Kosmix’s social genome platform, is in a unique position to invent and build this future" (http://walmartlabs.blogspot.com/search?updated-max=2011-11-30T21:01:00-08:00&max-results=7, accessed 01-20-2012).

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Microsoft Acquires Skype for $8.5 Billion May 2011

In its acquisition of Skype for $8.5 billion Microsoft acquired a company founded in 2003, which never made money, changed hands many times, and came with substantial debt. 

The purchase price was roughly ten times the $860 million revenue of the company in 2010. Skype's debt was $686 million — not a problem for Microsoft.

Microsoft paid such a premium for the company because at the time of purchase Skype was growing at the rate of 500,000 new registered users per day, had 170 million connected users, with 30 million users communicating on the Skype platform concurrently. Volume of communications over the platform totaled 209 billion voice and video minutes in 2010.

"Services like Skype can cut into the carriers’ revenues because they offer easy ways to make phone calls, videoconference and send messages free over the Internet, encroaching on the ways that phone companies have traditionally made money" (http://www.nytimes.com/2011/05/16/technology/16phone.html?hpw, accessed 05-16-2011).

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McKinsey Report on the Impact of the Internet on Growth, Jobs, and Prosperity May 2011

 McKinsey research into the Internet economies of the G-8 nations as well as Brazil, China, India, South Korea, and Sweden found that the web accounted for a significant and growing portion of global GDP. If measured as a sector, Internet-related consumption and expenditure were bigger than agriculture or energy. On average, the Internet contributed 3.4 percent to GDP in the 13 countries covered by the research—an amount the size of Spain or Canada in terms of GDP, and growing at a faster rate than that of Brazil.

"Research prepared by the McKinsey Global Institute and McKinsey's Technology, Media and Telecommunications Practices as part of a knowledge partnership with the e-G8 Forum, offers the first quantitative assessment of the impact of the Internet on GDP and growth, while also considering the most relevant tools governments and businesses can use to get the most benefit from the digital transformation. To assess the Internet's contribution to the global economy, the report analyzes two primary sources of value: consumption and supply. The report draws on a macroeconomic approach used in national accounts to calculate the contribution of GDP; a statistical econometric approach; and a microeconomic approach, analyzing the results of a survey of 4,800 small and medium-size enterprises in a number of different countries.  

"The Internet's impact on global growth is rising rapidly. The Internet accounted for 21 percent of GDP growth over the last five years among the developed countries MGI studied, a sharp acceleration from the 10 percent contribution over 15 years. Most of the economic value created by the Internet falls outside of the technology sector, with 75 percent of the benefits captured by companies in more traditional industries. The Internet is also a catalyst for job creation. Among 4,800 small and medium-size enterprises surveyed, the Internet created 2.6 jobs for each lost to technology-related efficiencies.

"The United States is the largest player in the global Internet supply ecosystem, capturing more than 30 percent of global Internet revenues and more than 40 percent of net income. It is also the country with the most balanced structure within the global ecosystem among the 13 countries studied, garnering relatively equal contributions from hardware, software and services, and telecommunications. The United Kingdom and Sweden are changing the game, in part driven by the importance and the performance of their telecom operators. India and China are strengthening their position in the global Internet ecosystem rapidly with growth rates of more than 20 percent. France, Canada, and Germany have an opportunity to leverage their strong Internet usage to increase their presence in the supply ecosystem. Other Asian countries are rapidly accelerating their influence on the Internet economy at faster rates than Japan. Brazil, Russia and Italy are in the early stages of Internet supply. They have strong potential for growth" (http://www.mckinsey.com/Insights/MGI/Research/Technology_and_Innovation/Internet_matters, accessed 01-19-2012).

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Ebooks Outsell Physical Books on Amazon.com May 19, 2011

Since April 1, 2011 Amazon reported that it sold 105 books for its Kindle ebook (e-book) reader for every 100 hardcover and paperback physical books.

At this time ebook sales represented 14% of of all general consumer fiction and nonfiction books sold, according to Forrester Research.

Amazon introduced the Kindle on November 19, 2007.

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New Corporation Sells MySpace for $545 Million Loss June 29, 2011

News Corporation sold social media website MySpace to advertising network Specific Media for "roughly $35 million." New Corporation purchased MySpace in 2006 for $580 million.

"The News Corporation, which is controlled by Rupert Murdoch, had been trying since last winter to rid itself of the unprofitable unit, which was a casualty of changing tastes and may be a cautionary tale for social companies like Zynga and LinkedIn that are currently enjoying sky-high valuations. . . .

"Terms of the deal were not disclosed, but the News Corporation said that it would retain a minority stake. Specific Media said it had brought on board the artist Justin Timberlake as a part owner and an active player in MySpace’s future, but said little else about how the site would change.  

"The sale closes a complex chapter in the history of the Internet and of the News Corporation, which was widely envied by other media companies when it acquired MySpace in 2005. At that time, MySpace was the world’s fastest-growing social network, with 20 million unique visitors each month in the United States. That figure soon soared to 70 million, but the network could not keep pace with Facebook, which overtook MySpace two years ago" (http://mediadecoder.blogs.nytimes.com/2011/06/29/news-corp-sells-myspace-to-specific-media-for-35-million/?hp, accessed 06-30-2011).

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Google Agrees to Acquire Smart-Phone Maker Motorola Mobility August 15, 2011

On August 15, 2011 Google announced that it agreed to acquire the smart-phone manufacturer Motorola Mobility, headquarted in Libertyville, Illinois, for $12,5 billion. This was Google's largest acquisition to date.

"In a statement, Google said the deal was largely driven by the need to acquire Motorola's patent portfolio, which it said would help it defend Android against legal threats from competitors armed with their own patents. This issue has come to the fore since a consortium of technology companies led by Apple and Microsoft purchased more than 6,000 mobile-device-related patents from Nortel Networks for about $4.5 billion, in early July. Battle lines are being drawn around patents, as companies seek to protect their interests in the competitive mobile industry through litigation as well as innovation.  

"However, as people increasingly access the Web via mobile devices, the acquisition could also help Google remain central to their Web experience in the years to come. As Apple has demonstrated with its wildly popular iPhone, this is far easier to achieve if a company can control the hardware, as well as the software, people carry in their pockets. Comments made by Google executives hint that Motorola could also play a role in shaping the future of the Web in other areas—for instance, in set-top boxes. Motorola is by far Google's largest acquisition, and it takes the company into uncertain new territory. The deal is also likely to draw antitrust scrutiny because of the reach Google already has with Android, which runs on around half of all smart phones in the United States.  

"Motorola, which makes the Droid smart phone, went all-in with Google's Android platform in 2008, declaring that all of its devices would use the open-source mobile operating system.  

"Before his departure as Google CEO, Eric Schmidt had begun pressing Google employees to shift their attention to mobile. Cofounder and new CEO Larry Page seems determined to maintain this change of focus. In a conference call this morning, he told investors, 'It's no secret that Web usage is increasingly shifting to mobile devices, a trend I expect to continue. With mobility continuing to take center stage in the computing revolution, the combination with Motorola is an extremely important event in Google's continuing evolution that will drive a lot of improvements in our ability to deliver great user experiences.' " (http://www.technologyreview.com/web/38320/?nlid=nldly&nld=2011-08-16, accessed 08-17-2011).

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Creative Destruction of the Book Trade by Amazon? February 8, 2012

" 'If you want a picture of the future, imagine a boot stamping on a human face — forever,' George Orwell wrote in 'Nineteen Eighty-Four.' In 'Animal Farm,' he concluded that revolutions are inevitably betrayed by their leaders. His novel 'Burmese Days' ends with the hero killing himself because he is unfit to live in this sour world. He shoots his dog too.  

"As a rule, modern civilization disappointed Orwell when it did not actually sicken him. But in at least one respect he was way too optimistic. Bookselling, he wrote in Fortnightly in November 1936, 'is a humane trade which is not capable of being vulgarized beyond a certain point. The combines can never squeeze the small independent bookseller out of existence as they have squeezed the grocer and the milkman.'

"Jump forward three-quarters of a century, and a certain Seattle-based combine is being accused of exactly that. All sorts of merchants, but particularly booksellers, were infuriated by Amazon’s effort before the holidays to use shops on Main Street and in malls as showrooms for people to check out items before ordering them more cheaply online. The retailer’s refusal to collect sales tax is a persistent grievance. Independent booksellers have even been forced into the novel position of hoping that their one-time foe, Barnes & Noble, survives so that it can serve as a bulwark against Amazon. Publishers, if anything, are more fearful than booksellers.  

"Now take a look at the cover of Bloomberg Businessweek two weeks ago. It shows a book in flames with the headline, 'Amazon wants to burn the book business.' What was remarkable was not just the overt Nazi iconography but the fact that it did not cause any particular uproar. In the struggle over the future of intellectual commerce in the United States, apparently even evocations of Joseph Goebbels and the Brown Shirts are considered fair game.  

"From Amazon’s point of view, the cover is incorrect even if you disregard any Nazi connotations. What would be the use to Amazon of a charred hulk? It does not want to destroy the book business, but simply to reinvent it — or, as its opponents would have it, seize control of it. (Amazon declined to comment)" (http://bits.blogs.nytimes.com/2012/02/08/amazon-up-in-flames/?hp, accessed 02-08-2012).

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Microsoft Invests in Barnes & Noble's Nook eBook Reader Division April 30, 2012

On April 30, 2012 Microsoft announced  that it would invest $300 million in Barnes & Noble’s Nook division for a 17.6 percent stake. The deal valued Barnes & Noble's eBook reader business at $1.7 billion.  Notably that is nearly double what Barnes & Noble’s entire market capitalization was on Friday, April 27, and more than what Barnes & Noble was valued at any time since mid-2008.

Barnes & Noble, the largest bookselling chain in the United States, wagered heavily on the Nook, competing against Amazon’s Kindle and Apple's iPad.

"The Nook division’s growth has come at enormous financial cost, weighing down on Barnes & Noble’s bottom line and prompting the strategic review. The retailer added on Monday that it was still weighing other options for the business.

"Through the deal, the two companies will settle their patent disputes, and Barnes & Noble will produce a Nook e-reading application for the forthcoming Windows 8 operating system, which will run on traditional computers and tablets.  

"The new division, which has yet to be renamed, will also include Barnes & Noble’s college business. It is meant to help the business compete in what many expect to be a growth area for e-books: the education market, something that Apple has already set its sights on.  

" The new company and 'our relationship with Microsoft are important parts of our strategy to capitalize on the rapid growth of the Nook business, and to solidify our position as a leader in the exploding market for digital content in the consumer and education segments,' William J. Lynch Jr., Barnes & Noble’s chief executive, said in a statement (http://dealbook.nytimes.com/2012/04/30/microsoft-to-take-stake-in-barnes-nobles-nook-unit/?hp, accessed 04-30-2012).

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Growing Adoption of the eBook Format in the U. S. May 29, 2012

"One thing, however, is certain, and about it publishers agree: e-book sales as a percentage of overall revenue are skyrocketing. Initially such sales were a tiny proportion of overall revenue; in 2008, for instance, they were under 1 percent. No more. The head of one major publisher told me that in 2010 e-book sales accounted for 11 percent of his house’s revenue. By the end of 2011 it had more than tripled to 36 percent for the year. As John Thompson reports in the revised 2012 edition of his authoritative Merchants of Culture, in 2011 e-book sales for most publishers were “between 18 and 22 percent (possibly even higher for some houses).” Hardcover sales, the foundation of the business, continue to decline, plunging 13 percent in 2008 and suffering similar declines in the years since. According to the Pew Research Center’s most recent e-reading survey, 21 percent of American adults report reading an e-book in the past year. Soon one out of every three sales of adult trade titles will be in the form of an e-book. Readers of e-books are especially drawn to escapist and overtly commercial genres (romance, mysteries and thrillers, science fiction), and in these categories e-book sales have bulked up to as large as 60 percent. E-book sales are making inroads even with so-called literary fiction. Thompson cites Jonathan Franzen’s Freedom, published in 2010 by Farrar, Straus & Giroux, one of America’s most distinguished houses and one of several American imprints now owned by the German conglomerate Holtzbrinck. Franzen’s novel sold three-quarters of a million hardcover copies and a quarter-million e-books in the first twelve months of publication. (Franzen, by the way, detests electronic books, and is also the guy who dissed Oprah when she had the gumption to pick his earlier novel, The Corrections, for her popular book club.) Did Franzen’s e-book sales depress his hardcover sales, or did the e-book iteration introduce new readers to his work? It’s hard to know, but it’s likely a bit of both" (http://www.thenation.com/article/168125/amazon-effect, accessed 06-03-2012).

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Online Advertising is Expected to Surpass Print Advertising October 2012

According to the October 2012 IAB Internet advertising revenue report by the Internet Advertising Bureau, a New York based international organization founded in 1996:

"In the first half of the year, U.S. Internet sites collected $17 billion in ad revenue, a 14 percent increase over the same period of 2011. . . . In the second half of last year, websites had $16.8 billion in ad revenue. So even if growth were to slow in the second half, digital media this year could exceed the $35.8 billion that U.S. print magazines and newspapers garnered in ad revenue in 2011.

"In fact, the digital marketing research firm eMarketer projects 2012 Internet ad spending in excess of $37 billion, while print advertising spending is projected to fall to $34.3 billion.

"Meanwhile, television ad spending—which Nielsen reports was nearly $75 billion in 2011—continues to dwarf both" (http://www.technologyreview.com/news/429638/online-advertising-poised-to-finally-surpass/?utm_campaign=newsletters&utm_source=newsletter-daily-all&utm_medium=email&utm_content=20121017, accessed 10-22-2012).

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Penguin to Merge with Random House October 29, 2012

On October 29, 2012 Bertelsmann, based in Gütersloh, Germany and Pearson, based in London, announced that they planned to combine their book publishing divisions, Random House and Penguin.  This merger, which could put as much as 25% of the American new book production in the hands of one company, was seen as the result of the growing power in the eBook market of dominant technology companies including Amazon, Apple and Google which pressured publishers to adjust their eBook strategy during a period in which traditional brick and mortar bookstores were disappearing.

"Under the agreement, Bertelsmann, which owns Random House, would control 53 percent of the merged publishers. Bertelsmann and Pearson would share executive oversight, with Markus Dohle of Random House serving as chief executive and John Makinson of Penguin becoming the chairman.  

"The deal would consolidate Random House’s position as the largest consumer book publisher in the English-language world, giving the combined companies greater scale to deal with the challenges arising from the growth of e-books and the rise of Internet retailers like Amazon.  

“ 'Together, the two publishers will be able to share a large part of their costs, to invest more for their author and reader constituencies and to be more adventurous in trying new models in this exciting, fast-moving world of digital books and digital readers,' said Marjorie Scardino, chief executive of Pearson, which is based in London.  

"By taking control of the company, Bertelsmann . . . hopes to avoid the problems that plagued a 50-50 partnership with Sony of Japan, in which the two companies combined their music recording divisions. The venture, Sony BMG, was riven by management turmoil and differences over strategy, prompting Bertelsmann to sell its share to Sony eventually" (http://www.nytimes.com/2012/10/30/business/global/random-house-and-penguin-to-be-combined.html, accessed 10-29-2012).

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$2.6 Billion Spent on Ads on Phones and Tablets in 2012 October 29, 2012

In a New York Times article published on October 29, 2012 Claire Cain Miller estimated that advertisers would spend $2.6 billion on ads on phones and tablets in 2012— less than 2 percent of the amount they would spend over all, but more than triple what they spent in 2010.

"Google earns 56 percent of all mobile ad dollars and 96 percent of mobile search ad dollars, according to eMarketer. The company said it is on track to earn $8 billion in the coming year from mobile sales, which includes ads as well as apps, music and movies it sells in its Google Play store. But the vast majority of that money comes from ads, it said."

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Google Has 67% of the U.S. Search Market and Collects 75% of U.S. Search Ad Dollars November 4, 2012

"Regulators in the United States and Europe are conducting sweeping inquiries of Google, the dominant Internet search and advertising company. Google rose by technological innovation and business acumen; in the United States, it has 67 percent of the search market and collects 75 percent of search ad dollars. Being big is no crime, but if a powerful company uses market muscle to stifle competition, that is an antitrust violation.  

"So the government is focusing on life in Google’s world for the sprawling economic ecosystem of Web sites that depend on their ranking in search results. What is it like to live this way, in a giant’s shadow? The experience of its inhabitants is nuanced and complex, a blend of admiration and fear.  

"The relationship between Google and Web sites, publishers and advertisers often seems lopsided, if not unfair. Yet Google has also provided and nurtured a landscape of opportunity. Its ecosystem generates $80 billion a year in revenue for 1.8 million businesses, Web sites and nonprofit organizations in the United States alone, it estimates.  

"The government’s scrutiny of Google is the most exhaustive investigation of a major corporation since the pursuit of Microsoft in the late 1990s" (http://www.nytimes.com/2012/11/04/technology/google-casts-a-big-shadow-on-smaller-web-sites.html?hpw, accessed 11-04-2012).

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"How the antiquarian book market has evolved for life on the web" December 19, 2012

From Wired.co.uk December 19, 2012:

By Chris Owen.

"Digital marketplaces such as Amazon have disrupted -- some might say ruined -- the traditional publishing industry. And following a flurry of launches in the last year, e-readers look set to appear in Christmas stockings everywhere. But what does all of this mean for the trade in antiquarian books?  

"Decades ago, the antiquarian book market was dominated by specialist sellers sitting in dusty shops stacked to the ceiling with first editions, signed copies, manuscripts, and rare folios. Then came the internet. With the advent of global access to information, (and stock), came the opportunity to reach out to a broader audience, and stores were battling with the new boys in the form of Abebooks (one of the very first sites on the web), and of course Amazon, which, lest we forget, started as an online book store.  

"Looking back, in 1997, there were around a million books available on the web -- at the time a seemingly huge number, but a fraction of the 140 million estimated books available online today. Books still form a massive volume of online retail trade; research has suggested that 41 percent of people who shop online have bought a book through the web.  

"Sam Missingham, co-founder of Future Book, agrees, "Amazon's second hand market has revolutionised the way people buy second hand books. There's almost no book I can't buy now if I want a copy -- 10 years ago I people could have taken a year scouting through second hand shops and still not have found what I want. Now one five-second search on Amazon and you can have it delivered to your door."

"However, this marketplace brought with it opportunity and also threats -- according to Julian Wilson, Books Specialist at Christie's in London, 'There's never been a better time for people to buy such a wide range of rare books at low prices. A culture of price under cutting is causing prices to fall dramatically in the low to mid end market. For instance, 17th-century county maps of England are selling at about 30-40 percent of their value 20 years ago.'

"Missingham agrees to an extent, but suggests the mid-market is perhaps just 'shrinking slightly'. She adds, 'the mid-market for ebooks on Kindle store is being overloaded with self-published books of varying quality -- indeed oft described as a tsunami of shit.'

"At the top end however, the market is booming. Antiquarian literature has seen consistent growth, and the likes EEBO (Early English Books Online) is allowing collectors to compare rare items and verify their credentials, while Abebooks and the records kept by resellers and auction houses has allows them to price items effectively. Indeed, the likes of EEBO and other collectables sites are proving invaluable in the battle against forgeries, and in clearing up subjective opinion on veracity of rare books.  

"Wilson cites a recent example where he was unconvinced that a Harry Potter first edition hardback, potentially worth £10,000, was bona fide. On examining the title page closely, he discovered it was taken from a paperback and had been almost perfectly inserted into a second edition hardback, itself worth only £200.  

"Similarly he remembers a faked frontispiece in a copy of Shakespeare's First Folio, an almost legendarily rare item in the antiquarian book market. Convinced there was something amiss, he and his colleagues spent hours at the British Library comparing it to verified copies of the First Folio, as well as other online resources, and ultimately were able to put their finger on the problem: the chain lines in the paper (a distinct book "fingerprint" as it were), were different to confirmed editions.  

"Ironically, the market was also affected by the dotcom boom itself and the boom of the modern digital age -- not through the surge of online retail, but by the entrepreneurs behind the multi-million dollar sites which emerged, who drove a spike in the antiquarian book market, one previously driven by 45-65-year-old collectors which have (and still do) dominate the scene.  

"These new collectors wanted the flagship books; the likes of Darwin's The Origin of the Species. What this meant for the market was that individual books shot up in price (and have remained high) -- a first edition of Darwin's 'Origin' was worth perhaps £20,000 in 1994, but by 1999 had shot up to around £80,000 and remains around there today, nudging toward £100,000 for very fine copies.  

"However, first editions of the rest of Darwin's leading work, such as The Descent of Man remain static at around £5,000, while his other lesser known works can be found still for prices in the hundreds of pounds. This skew is true for 'Origin…' as it is for many other seminal works -- Adam Smith's The Wealth of Nations being a prime example, which Christie's sold for a record-breaking £157,250 in 2010.

"Interestingly, it is around this time that the collectables market started to witness a change in marketing strategy. Previously auction house brochures detailed the items' condition and quality; from the mid-nineties, explanations of the importance started to emerge and dominate in order that potential buyers (who had no collectables history, nor academic insight into the literary world), could understand what they were buying.  

"It's natural to think that such a drive in the top end might push the collectable books market the same way as philately, where rare stamps are now holding their value better than anything aside from gold, and indeed are proving to be a highly lucrative investment strategy. However, a statute binding all members of the Antiquarian Book Sellers Association strictly forbids this: sellers cannot position rare books as investment opportunities. It's an intriguing polarity, and one that could be affected by an additional factor, the proliferation of the e-reader.

"The democracy that cheap, easily-downloadable books brings could be seen as a threat to the sector, and indeed there has been concern that it too will drive a race to the bottom and devalue the printed page. However, Wilson thinks this could in fact bring with it a great opportunity to put value back into the publishing sector, through initial discovery of books, and the subsequent creation of ultra-limited, beautifully-made original products.  

"While this may drive a collectables market, it may not drive the sales figures (and revenue) that investors will demand. However, it does open up the debate about whether publishers should also take a longer term market responsibility as well as the shorter term financial one. 

"Missingham suggests that there are other issues to heed, namely the community aspect of any web-based marketplace, 'the main issue is how to find and discover the quality books online. Talk in the industry is of reliable gatekeepers reducing in number, the surge of dubious, untrustworthy online reviews being the main issue'.

"There's much talk of similarities between the second hand book industry and that of the humble independent record shop. While the likes of Rough Trade, itself a British icon, are prospering, the number of small private stores across the country has plummeted in the last decade -- predominantly as a result of the digital music boom, and the devaluing of music amid the clamour for "free" content. Let's hope the books trade can learn from music's mistakes."

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2013 – Present

Online Reviews Used as Attack Weapons to Kill Sales of a Book January 20, 2013

"Reviews on Amazon are becoming attack weapons, intended to sink new books as soon as they are published.

"In the biggest, most overt and most successful of these campaigns, a group of Michael Jackson fans used Facebook and Twitter to solicit negative reviews of a new biography of the singer. They bombarded Amazon with dozens of one-star takedowns, succeeded in getting several favorable notices erased and even took credit for Amazon’s briefly removing the book from sale.  

" 'Books used to die by being ignored, but now they can be killed — and perhaps unjustly killed,' said Trevor Pinch, a Cornell sociologist who has studied Amazon reviews. 'In theory, a very good book could be killed by a group of people for malicious reasons.'

"In 'Untouchable: The Strange Life and Tragic Death of Michael Jackson,' Randall Sullivan writes that Jackson’s overuse of plastic surgery reduced his nose to little more than a pair of nostrils and that he died a virgin despite being married twice. These points in particular seem to infuriate the fans.  

"Outside Amazon, the book had a mixed reception; in The New York Times, Michiko Kakutani called it 'thoroughly dispensable.' So it is difficult to pinpoint how effective the campaign was. Still, the book has been a resounding failure in the marketplace.  

"The fans, who call themselves Michael Jackson’s Rapid Response Team to Media Attacks, say they are exercising their free speech rights to protest a book they feel is exploitative and inaccurate. 'Sullivan does everything he can to dehumanize, dismantle and destroy, against all objective fact,' a spokesman for the group said.  

"But the book’s publisher, Grove Press, said the Amazon review system was being abused in an organized campaign. 'We’re very reluctant to interfere with the free flow of discourse, but there should be transparency about people’s motivations,' said Morgan Entrekin, president of Grove/Atlantic, Grove’s parent company" (http://www.nytimes.com/2013/01/21/business/a-casualty-on-the-battlefield-of-amazons-partisan-book-reviews.html?hpw&_r=0, accessed 01-21-2013).

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